A Study on the Impact on International Trade Post Liberalization in India

Abstract

This research paper aims to examine the impact of liberalization on international business by analyzing how economic reforms and trade policy changes have shaped global business dynamics. On the verge of formulating foreign trade plans, India exhibited a surplus of imports over exports. The surge in imports primarily stemmed from accumulated demand during and after the war, a result of diverse controls and limitations. Similar to other emerging economies, India confronts inherent imbalances in its trade equilibrium. Starting from the inaugural economic plan, the revenue generated from India's exports has consistently fallen short of covering the expenses incurred on importing goods. India recognized the negative impact of its protectionist policies on long-term economic performance and began dismantling trade barriers to foster economic development. The paper investigates the effects of liberalization on trade flows, foreign investment, and market competition, highlighting both the benefits and challenges faced by countries in the post-liberalization era.